Real Estate

Areas in Thailand

Land in Thailand is an attractive property right for foreigners interested in using Thai real estate. Since foreigners cannot own land directly, investors must look for alternatives to freehold ownership. The Surfaces option is a strong property right that offers long-term protection to potential investors.

A surface is a property right by which an owner will cede the use of his land for a certain time to the surface owner. Unlike a lease, an acreage contract is a real property right. While the lease focuses on the people who sign the contract, the surfaces focus on the land stipulated in the contract. As it is a property right, the areas must be registered with the Land Office.

Lands in Thailand give the landowner the right to build or plant on land. The term of the areas can be defined in two ways. First of all, the owner can grant a surface for 30 years. Once the 30-year term has expired, the parties may extend the contract for another 30 years. The second option is to structure the agreement as a life estate. The parties may agree that the surfaces will last for the lifetime of one of the parties involved, be it the owner or the surfacer.

Another beneficial aspect of surfaces is that it is transferable. This is because it is a true property right. The surface holder may sell or transfer his interest at any time. In addition, the surface may convert interest in a will. The transferability of land makes it a unique property right for foreigners in Thailand.

For married couples: Areas in Thailand are commonly used among married couples where one spouse is Thai and the other is a foreigner. Since the foreign spouse cannot own land, the Thai spouse can purchase property and grant an acreage to the foreign spouse. This requires somewhat complex contractual maneuvering, so a couple should consult a lawyer before opting for this option.

Practicalities: Although a foreign spouse, in case of divorce, can keep the rights associated with the surfaces, this does not always work as a practical matter. This is particularly true in the more rural regions of Thailand. While a foreigner may retain the legal right to use her spouse’s property, local family and friends may ignore this right and simply refuse to cooperate. For the foreign party to protect this right, he may consider entering into a prenuptial agreement with his Thai fiancĂ©e in which this right is set out in definite terms.

Leave a Reply

Your email address will not be published. Required fields are marked *